Time to face the problems

[IndianRocks]

Hi guys

First post on here, please be gentle and explain things simply.

I have a few debts that I am going to struggle to repay and have buried my head for a while, its time to sort it out.

One is with Vanquis, I took out a credit card with them back in 2009 or 2010 not very sure, at the time I was a student (2009-2012) and they said I could take out the protection so if my income were to drop I would be covered for the repayments. I figured as I was a student I already had a low income but it would be good to know I would be covered, I asked her if this would still apply as I was a student and the lady on the phone said yes. Ok so move on and I got a job, the credit limit kept being increased from the original £500 up to £3000. I now loose some hours at work and am struggling to pay. They say I cant claim for a reason I now cant recall. I basically stopped paying them anything. I did intend to look into and contest their decision but apparently it didnt pay your monthly fee, just allowed you a "x number of months payment free" and wasnt considered a payment protection policy. I now feel I should be challenging them to write off the debt as they did not take reasonable measures to ensure I could afford the repayments when increasing my limit. I am not absolving myself of blame, but someone has to put a stop to this irresponsible lending practices and they have to take some of the responsibility. Any advice on what I can do, I have had a number of letters from debt collection people but i admit to having ignored them ( read binned them!).

The second issue I have is with a debt from Very the catalogue. I have had letters from lowells debt collectors and now have received a letter from lowells solicitors saying they are going to take it to court and adding a court fee of £60, solicitors costs estimated at £70 and £19 in interest on top of the £690.30 debt.

Any advice you can give as how best to move forward on these is very much appreciated

[nemesis45]

Re: Time to face the problems

Hi guys

First post on here, please be gentle and explain things simply.

I have a few debts that I am going to struggle to repay and have buried my head for a while, its time to sort it out.

One is with Vanquis, I took out a credit card with them back in 2009 or 2010 not very sure, at the time I was a student (2009-2012) and they said I could take out the protection so if my income were to drop I would be covered for the repayments. I figured as I was a student I already had a low income but it would be good to know I would be covered, I asked her if this would still apply as I was a student and the lady on the phone said yes. Ok so move on and I got a job, the credit limit kept being increased from the original £500 up to £3000. I now loose some hours at work and am struggling to pay. They say I cant claim for a reason I now cant recall. I basically stopped paying them anything. I did intend to look into and contest their decision but apparently it didnt pay your monthly fee, just allowed you a "x number of months payment free" and wasnt considered a payment protection policy. I now feel I should be challenging them to write off the debt as they did not take reasonable measures to ensure I could afford the repayments when increasing my limit. I am not absolving myself of blame, but someone has to put a stop to this irresponsible lending practices and they have to take some of the responsibility. Any advice on what I can do, I have had a number of letters from debt collection people but i admit to having ignored them ( read binned them!).

The second issue I have is with a debt from Very the catalogue. I have had letters from lowells debt collectors and now have received a letter from lowells solicitors saying they are going to take it to court and adding a court fee of £60, solicitors costs estimated at £70 and £19 in interest on top of the £690.30 debt.

Any advice you can give as how best to move forward on these is very much appreciated

Hi welcome to LB,

Let's take the Very account first, Lowell will quite quickly resort to issuing a CC Claim.
Is the solicitor Bryan Carter?
When was this account opened?
When was the account defaulted and sold to Lowell?
Things to do get ahead of the game, you need to
send a request under sect.77/78 of The Consumer Credit Act 1974
for a copy of the Very agreement, there is a £1 statutory fee for this
use a Postal Order endorsed for " Statutory Fee Only" Lowell has 12 +2
Working Days to comply. Use signed for post and check delivery date
the timescale starts then.

Is Vanquis still the owner of this account or has this one been sold on?

Making a case for " Irresponsible " lending will not be easy!

From reading what you say about ignoring letters you could well
end up with a court judgement by default, have you checked your
credit reference files on the debts? If not I suggest you check asap.
There's Noddle which is Free Online. Experian also now has a free
site as well.

nem

[IndianRocks]

Re: Time to face the problems

Thank you for your reply.

I have checked my credit file, just now, and the two are listed as defaults but not ccj (not sure if it would show as ccj or just default).
Vanquis havent written to me in a long while, the last letter about it came from Robinson Way. I dont want to sound like I am trying to avoid paying Vanquis, but I feel angry with them (and myself!) that I paid such a high rate of interest, the monthly "protection" which was protection against nothing it would seem. In my eyes I have paid back more than I spent on the card and it feels unjust somehow. I cant claim ppi but yet I was paying a monthly fee for what was sold to me as just that.
Robinson Way did offer a reduced balance if I paid it, I think they knocked off about a quarter of the balance they say I owe.

[IndianRocks]

Re: Time to face the problems

Sorry,I didnt answer all your questions.
I stopped paying in January of this year, on both accounts as this was when things got really tight with a reduced salary.

The letter for the Very account came from Lowells Solicitors PO Box 1419, Northhampton, it says "our client Lowell Portfolio l Ltd, Original Company Name Shop Direct".
The account was opened in roughly May 2013, stopped paying Jan 2015.

[Amethyst]

Re: Time to face the problems

This ? https://www.vanquis.co.uk/credit-car...nt-option-plan

Did you communicate with Vanquis ?

Designed to act as a safety net you can freeze your account for up to 2 years in the event of difficult financial circumstances without incurring any interest or needing to make any payments.

Haven't checked the fine print, pretty sure it'll work out no one ever could actually use it.

ahh here

mmm underlined bit possibly?

“
20. REPAYMENT OPTION PLAN

General
20.1 You may opt-in to the Repayment Option Plan (the 'Plan'). If you do so you will need to pay a Plan Charge which will be calculated and payable in accordance with paragraphs 20.7 - 20.9 below.
20.2 If you opt-in to the Plan you will be entitled, subject to the terms and conditions set out below, to receive all the features of the Plan whether you are in full-time, part-time or temporary employment, are self-employed, or are unemployed or retired. However, the situations in which your Account may be frozen (as described in paragraphs 20.12 - 20.17 below) will depend on your employment status.
20.3 The Plan is not a regulated insurance product and will not pay off any capital or interest on your Account.
20.4 We do not provide advice or a recommendation on whether the Plan is suitable for your purposes.
Opting-in to the Plan
20.5 You may opt-in to the Plan at any time by telling us by telephone or in writing that you wish do so. To do this you may call 0330 099 3010 or write to Customer Service, P.O Box 399 CHATHAM, ME4 4WQ or use any other contact details we give you. If you inform us that you do wish to opt-in to the Plan we will provide you with all of the features of the Plan from the date of the receipt by us of your request whether it is by telephone or in writing.
Cost of the Plan
20.6 The cost of the Plan depends on your personal circumstances.
20.7 If you are in full-time, part-time or temporary employment or are self-employed, the cost of the Plan will be charged at the rate of £1.29 per £100 (1.29% per month) of your monthly outstanding balance as shown on your statement ('the Full Plan Charge'). This is known as the Full Plan.
20.8 If you are not employed (as described in paragraph 20.7) or you are retired, the cost of the Plan will be charged at the rate of £1.19 per £100 (1.19% per month) of your monthly outstanding balance as shown on your statement ('the Standard Plan Charge'). This is known as the Standard Plan.
20.9 We will charge the Full or Standard Plan Charge directly to your Account each month as a Purchase Transaction. The Full or Standard Plan Charge will accrue interest in the same way as other Purchase Transactions.
Features of the Plan
20.10 If you opt-in to the Plan, in return for the Full or Standard Plan Charge but subject to the terms and conditions set out below, we agree:
20.10.1. in the event of a Difficult Financial Circumstance (as defined below) to 'Freeze' your Account (as described in paragraph 20.13) subject to the terms set out in paragraphs 20.12 and 20.14 - 20.17 below;
20.10.2. to allow you to take a 'Payment Holiday' (as described in paragraph 20.18) subject to the terms set out in paragraphs 20.19 - 20.21 below;
20.10.3. to provide you with a 'Lifeline' (as described in paragraphs 20.23) subject to the terms set out in paragraphs 20.22 and 20.24 - 20.25 below;
20.10.4. (subject to your having a mobile telephone capable of receiving such messages and your providing us with its number) to provide you with the 'SMS Text Service' (as described in paragraphs 20.27 - 20.28) subject to the terms set out in paragraphs 20.26 and 20.29 below.

20.11 If you wish to Freeze your Account or take a Payment Holiday you must call the Plan helpline on 0330 099 3010. The Plan helpline is available between 8am and 8pm Monday to Friday and 9am to 5.30pm on Saturday.
Freezing your Account
20.12 We agree that if you experience a Difficult Financial Circumstance (as defined below) and you request us to Freeze your Account by telephoning us in accordance with paragraph 20.11, we will, subject to the terms and conditions set out herein, Freeze your Account for as long as the Difficult Financial Circumstance continues to apply, up to a maximum period of 24 months per event (or series of connected events).
20.13 If we Freeze your Account in accordance with the terms of the Plan that means that:
20.13.1 you will not be able to use your Card or Account;
20.13.2 we will not charge you interest on any outstanding balance under your Account
20.13.3 you will not be obliged to make any Repayments
20.13.4 you will not be liable to pay any Fees or Charges.

20.14 After the Difficult Financial Circumstance ceases to apply or after 24 months (whichever is sooner), you will be able to use your Card or Account but interest will accrue again and you will be obliged to continue your Repayments and pay any applicable Fees and Charges that accrue on the Account.
20.15 If you request us to Freeze your Account you must provide us with reasonable evidence of the occurrence of the Difficult Financial Circumstance when you contact us to Freeze the Account and you must continue to supply us, on request by us, with reasonable evidence of the continuation of the Difficult Financial Circumstance at any time while your Account is Frozen. If you do not do so, we may terminate the Freezing of your Account.
20.16 You agree that if you wish us to Freeze your Account as a result of any Difficult Financial Circumstance and you have notified us within 90 days of its first occurrence and provided us with reasonable evidence as required under paragraph 20.15, any Freezing of your Account will be backdated to the date of the first occurrence of that Difficult Financial Circumstance. Where first notification of such Difficult Financial Circumstance is made more than 90 days after its first occurrence and you have provided us with reasonable evidence as required under paragraph 20.15, any Freezing of your Account will be backdated to the date of notification of that Difficult Financial Circumstance.

Difficult Financial Circumstance
20.17 In relation to both the Standard Plan and the Full Plan 'Difficult Financial Circumstance' means the occurrence of one of the events listed below or the occurrence of more than one of the events listed below in a series of connected events:
20.17.1 you become sick, disabled or have an accident which affects your ability to make your repayments; or
20.17.2 you have to stay in hospital because of a medical condition; or
20.17.3 you have to attend jury service; or
20.17.4 your main home is significantly damaged by a natural disaster e.g., flooding; or
20.17.5 your partner (who you have lived with for more than 6 months) or an immediate family member (sibling, parent, spouse or child) dies;
and in relation to the Full Plan 'Difficult Financial Circumstance' means also:
20.17.6 you become unemployed involuntarily (other than as a result of your own misconduct or by reason of your retirement) or by reason of redundancy including non-compulsory redundancy; or
20.17.7 you are put on short-time working or laid-off reducing your usual weekly hours of work by 25% or more; or
20.17.8 you are self-employed and have suffered a reduction in weekly income by 25% or more through loss or non-renewal of contracts or work;
20.17.9 you take leave from work to care for a partner (who you have lived with for more than 6 months) or a member of your immediate family (sibling, parent, spouse or child) and suffer loss of income; or
20.17.10 you go on maternity, paternity or adoption leave.

Payment Holiday
20.18 A Payment Holiday means that you will not be obliged to make your next Minimum Repayment on the Repayment Due Date.
20.19 We agree that we will allow you to take a Payment Holiday under the terms of the Plan if:-
20.19.1 your Account has been open for at least 6 months; and
20.19.2 you have not taken a Payment Holiday on your Account which allowed you to miss making either of the last two Minimum Repayments on your Account; and
20.19.3 a Lifeline has not been used in respect of either of the last two Minimum Repayments on your Account; and
20.19.4 you have not already taken a Payment Holiday at any time in the current Customer Account Year; and
20.19.5 your Account is not and has not at any time within the last 2 months been subject to a payment arrangement agreed with us under which you have made repayments lower than those which would have been due under the terms and conditions of your Account; and
20.19.6 your Account is not frozen under the Plan in accordance with paragraphs 20.12 - 20.17; and
20.19.7 you are not in breach of the terms and conditions of your Account.

20.20 If you wish to take a Payment Holiday and are eligible under paragraph 20.19, you must contact us to request it before midday on the day of your Repayment Due Date or, if that day falls on a non-working day, you must contact us to request it before midday on the last working day before that non-working day. If you do so and you are eligible for a Payment Holiday we will allow you to miss making the Minimum Repayment on the Repayment Due Date.
20.21 Interest will continue to accrue on your Account and will not be suspended during any Payment Holiday.
Lifeline
20.22 We agree that if you do not make your Minimum Repayment on your Account by the Repayment Due Date we will provide a Lifeline on your Account if:-
20.22.1 your Account has been open for at least 6 months; and
20.22.2 you have not taken a Payment Holiday on your Account which allowed you to miss making either of the last two Minimum Repayments on your Account; and
20.22.3 your Account is not and has not at any time within the last 2 months been subject to a payment arrangement agreed with us under which you have made repayments lower than those which would have been due under the terms and conditions of your Account; and
20.22.4 you have not already had a Lifeline provided on your Account at any time in the current Customer Account Year; and
20.22.5 a Lifeline has not been provided in respect of either of the last two Minimum Repayments on your Account; and
20.22.6 your Account is not frozen under the Plan in accordance with paragraphs 20.12 - 20.17; and
20.22.7 you are not in breach of the terms and conditions of your Account.

20.23 If you are eligible for a Lifeline on your Account, that means that we will:
20.23.1 notify you that we have provided you with a Lifeline on your Account;
20.23.2 suspend your Account so that you will not be able to use your Card or Account until we have received the Minimum Repayment which you have not paid;
20.23.3 suspend your obligation to make your Minimum Repayment (to which the Lifeline relates) on the Repayment Due Date in accordance with the terms of paragraph 20.24 below;
20.23.4 waive or refund any Late Payment Charge or Over Limit Charge that you would have had to pay, as a result of your failure to make any Minimum Repayment, if the Lifeline had not been provided to you; and
20.23.5 subject to you meeting your obligations under paragraph 20.24, report your Account as 'current' when we next report the performance of your Account to credit reference agencies.

20.24 Following the provision of a Lifeline, you must pay the Minimum Repayment you have missed and to which the Lifeline applies before the next Repayment Due Date for making a Minimum Repayment on your Account. If you do this the suspension of your Account under paragraph 20.23.2 will cease as from the next working day following the date the payment reaches your account. If you fail to do this and you also fail to make the next Minimum Repayment on your Account by the Repayment Due Date applicable to that Minimum Repayment, the suspension of your Account will continue and we will report to credit reference agencies that you have missed those two payments.
20.25 While your Account is suspended following the provision of a Lifeline:
20.25.1 interest will continue to accrue on your Account;
20.25.2 you will continue to be liable for all Charges and Fees apart from those which have been specifically waived or refunded under paragraph 20.23.4.

[IndianRocks]

Re: Time to face the problems

This ? https://www.vanquis.co.uk/credit-car...nt-option-plan

Did you communicate with Vanquis ? Haven't checked the fine print, pretty sure it'll work out no one ever could actually use it.

Yes thats how it is clearly displayed now, but it wasnt so clearly described to me at the time. Its still a con though.

[Amethyst]

Re: Time to face the problems

Of course it is, all these things are, that's why they are having to be repaid to millions of people by the banks ..... I don't see why you can't claim for miselling the same as PPI or CPP - you didn't know you had it, didn't understand it and when you fell into difficulty and started looking at your debts you noticed you'd be paying for it but it didn't apply anyway.... etc.

Did you actually use the ''lifeline'' or any of that ?

[IndianRocks]

Re: Time to face the problems

I think I need to ring them again and ask why I wasn't / am not eligible. I have forgotten exactly what they said to be honest, probably because I was so upset/angry. At the time of taking out the card, they did not explain to me that there were two types either, all I was concerned with was that they were aware I was a student so already on a low income. I did not inform them when I moved into employment as I was unaware there was another plan. Maybe that is the reason why they said I was/am not eligible. I will take a look at the PPi section and see if I can have a go at claiming it back.

So when Robinsons next contact me, which I am sure they will, what is my best course of action? Tell them I dont want to deal with them as I am dealing with the person who I had the card with?? or do I have to deal with them? Thanks in advance

[Amethyst]

Re: Time to face the problems

Robinson way will be acting for Hoist (I believe) who will have bought the debt from Vanquis, so you will need to deal with them directly about the court threat. You should get in contact with them to make an AFFORDABLE payment arrangement.

Lowells are likely to take the Very account to court - so I would be getting in touch to sort out an AFFORDABLE repayment arrangement with them.

Both debts are quite recent and probably applied for online, and there's no chance of being stat barred, so I don't think there is a lot of point hanging on for court action first.


On the protection issue -

they said I could take out the protection so if my income were to drop I would be covered for the repayments. I figured as I was a student I already had a low income but it would be good to know I would be covered, I asked her if this would still apply as I was a student and the lady on the phone said yes.

If you opt-in to the Repayment Option Plan, you must notify us that your financial circumstances have changed (e.g. you become retired) and you need to be moved from the Full Plan to the Standard Plan or from the Standard Plan to the Full Plan. If you do so, you will be automatically moved to the appropriate Plan and you will automatically be charged the appropriate Plan Charge.

So that will probably be why you couldn't claim on the plan, however as you said you weren't told that there was another plan you had to change to then you still might have a chance. I don't think it will hurt to write to them and then send the complaint on to the FOS - they can only say no.

Irresponsible lending would be incredibly difficult - possibly if you were still a student when they increased your limit to £3k ?

[IndianRocks]

Re: Time to face the problems

They gradually increased the limit, I cant recall now when it hit £3,000 and if I was working by then, but there was never any enquiry as to my status each time they increased it.

If I send a postal order do I have to make it payable to Lowells or just a blank one, its years since I bought a postal order not really sure what you do with them.

[Amethyst]

Re: Time to face the problems

me neither tbh, I sent one a while back and had it made out to the company I was sending it to, use the full company name - so Lowell Portfolio I - possibly - check the letter. Are you going to send a CCA request then?

[IndianRocks]

Re: Time to face the problems

I dont know how best to proceed really. I have some time with Vanquis perhaps as I have not had a letter from Robinson Way for a while (6or7 weeks). The Very one, should I just be working out how much i can afford and offer them that? will that suffice to stop court proceedings? If I do that, do I need to show and evidence my income and expenditure or will they just trust what I say? I do work bu part time and I get working & child tax credits.

What do you feel is a good way forward

[Debt Camel]

Re: Time to face the problems

How much do you owe vanquis? Any other debts apart from the Very catalogue, eg overdraft, council tax arrears, other credit cards, payday loans etc?

[IndianRocks]

Re: Time to face the problems

My credit limit was £3000, I think the last letter I got said something like £3300. Other than Very which is just under £700 there are no other debts at all. These were/are the only 2 .